- USDTHB: moving in the range 36.615-36.75 this morning supportive level at 36.50 resistance level at 36.80
· SET Index: 1,379.5 (+0.00%), 2 Apr 2024
· S&P 500 Index: 5,205.8 (-0.73%), 2 Apr 2024
· Thai 10-year government bond yield (interpolated): 2.53 (+2.62 bps), 2 Apr 2024
· US 10-year treasury yield: 4.36 (+3.00 bps), 2 Apr 2024
- Fed officials see three rate cuts 'reasonable' this year
- Euro zone factory downturn deepened in March but some recovery signs, PMI shows
- Tokyo inflation slowdown, output slide clouds BOJ's rate hike outlook
- Dollar dips while jawboning supports yen
Fed officials see three rate cuts 'reasonable' this year A pair of Federal Reserve policymakers often considered to have divergent monetary policy leanings on Tuesday both said they think it would be "reasonable" to cut US interest rates three times this year, even as stronger recent economic data has sown investor doubts about that outcome. Cleveland Fed Bank President Loretta Mester and San Francisco Fed Bank President Mary Daly last month joined the US central bank's unanimous vote to leave short-term interest-rates in the 5.25%-5.5% range to keep putting downward pressure on inflation. "At this point, the economy and policy are in a good place," Daly said at an event in Las Vegas. "Inflation is coming down, but it's slow, it's bumpy and slow. The labor market is still going strong, and growth is going strong. Projections published at the Fed's March meeting showed the typical policymaker expected to deliver three quarter-point interest rate cuts.
Euro zone factory downturn deepened in March but some recovery signs, PMI shows Overall manufacturing activity in the euro zone took a further turn for the worse in March, contracting at a steeper pace than in February, but there were signs of recovery in Italy and Spain, surveys showed on Tuesday. Demand continued to fall, according to the surveys which nevertheless demonstrated an uptick in optimism, suggesting the region may soon stage a wider recovery. HCOB's final euro zone manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, dipped to 46.1 in March from February's 46.5, beating a preliminary estimate of 45.7 but staying below the 50-mark denoting growth in activity for a 21st month. An index measuring output rose from February's 46.6 to 47.1, improving on the flash estimate of 46.8.
Tokyo inflation slowdown, output slide clouds BOJ's rate hike outlook Core inflation in Japan's capital slowed in March and factory output unexpectedly slid in the previous month, heightening uncertainty on how soon the Bank of Japan can raise interest rates again after exiting its radical monetary stimulus. The slew of weak signs in the economy could prompt the central bank to go slow in its next rate hike and give investors an excuse to continue selling yen, keeping pressure on Japanese authorities to intervene in the market to prop up the currency. Core consumer price index (CPI) in Tokyo, an early indicator of nationwide figures, rose 2.4% in March from a year earlier, matching a median market forecast and slowing slightly from a 2.5% gain in February. A separate index that excludes the effect of both fresh food and fuel costs, viewed as a broader price trend indicator, also showed inflation slowing to 2.9% in March from 3.1% in February.
Dollar dips while jawboning supports yen The 10-year government bond yield (interpolated) on the previous trading day was 2.53, +2.62 bps. The benchmark government bond yield (LB31DA) was 2.51, +0.50 bps. Meantime, the latest closed US 10-year bond yields was 4.36, +3.00 bps. USDTHB on the previous trading day closed around 36.66. Moving in a range of 36.615-36.675 this morning. USDTHB could be closed between 36.50-36.80 today. The US dollar was down on Tuesday after earlier hitting its highest in almost five months, following a new report that showed US job openings held steady at higher levels in February. The Japanese yen was last up at 151.605 per dollar, after earlier dipping to 151.79. It has traded in a tight range since reaching a 34-year trough of 151.975 on Wednesday, which spurred Japan to step up warnings of intervention. The dollar index rose to 105.1 on Tuesday, its highest level since Nov. 14, adding to sharp gains on Monday after US data unexpectedly showed the first expansion in manufacturing since September 2022, causing traders to pare rate bets.
Sources : ttb analytics , Bloomberg, CNBC, Trading economics, Investing, CEIC
